ORS Audit Department Work Paper Preparation and Work Paper Review Process Standardization

Abstract

One essential function of the South Carolina Office of Regulatory Staff's Audit Department is to ensure that utilities file accurate and properly supported rate case applications. Without audit department review, utilities could purposely misstate financial information on rate case applications to obtain higher rates, more profit and more return for their shareholders, while unduly penalizing rate payers. Currently within the audit department, there are four audit manager's whose teams are completing audits, preparing work papers, and reviewing audit work papers differently. Managers and staff are following their own individual established processes, preparation and documentation standards. The purpose of this project is to investigate work paper preparation techniques, standards, practices, etc. with the goal of standardizing the audit department's audit processes, work paper preparation and work paper review processes. Standardization will assist in eliminating any discrepancies between managers and staff in the way audits are conducted and documented.